Crypto Stocks in Green as Bitcoin Flirts Around ATH

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Crypto stocks in the US had a promising start to the week, with their prices increasing. Coincidentally, Bitcoin, the biggest digital currency, hovered near its record-breaking price of $73,000.

Crypto Stocks Trading Higher

Based on Coindesk’s latest update, Coinbase Global Inc (NASDAQ: COIN) experienced a 6.68% rise in share price to $256.99. Having debuted as a public company in 2021, Coinbase has had an impressive year so far. In February, it disclosed its Q4 2023 earnings, showcasing profitability once again.

In a corresponding development, MicroStrategy Inc (NASDAQ: MSTR), a well-known corporate Bitcoin investor and business analytics company, saw its stocks climb by 5.14%, reaching $1,512.99. Meanwhile, BlackRock’s Bitcoin ETF (IBIT) experienced approximately a 6.5% growth in pre-market trading.

Bitcoin mining stocks joined in the market surge. For instance, Hut 8 Corp (TSE: HUT) rose by 5.6%, or CAD$12.2, and Marathon Digital Holdings Inc (NASDAQ: MARA) gained 5.2% to reach $17.95. Argo Blockchain Plc (LON: ARB), which is listed on the London Stock Exchange, experienced a similar uptick of 5%.

Since the beginning of this week, the cryptocurrency market has experienced a surge in value for several reasons, fueling investor enthusiasm and increased curiosity about digital currencies. Although it faced hurdles due to economic instability worldwide in 2023, the market demonstrates signs of strength and determination.

Institutional investors have significantly boosted the market’s revival by increasing their adoption of cryptocurrencies after the SEC’s approval of Bitcoin spot ETFs. According to a previous report from Coinspeaker, there was an inflow of $708 million into global crypto assets last week, bringing the total assets under management up to $53 billion.

Impact of Upcoming Halving Event on Bitcoin’s Price

At present, the cost of Bitcoin is at $70,779, representing a 2.05% decrease over the previous 24-hour period. Despite this price decline, Bitcoin’s market capitalization remains substantial at $1.3 trillion. Notably, the trading volume for Bitcoin has risen by 14.67% to an impressive $35 billion within the same timeframe. This trend suggests that investors continue to actively purchase Bitcoin.

In simpler terms, the expected Bitcoin halving in late March 2024 is believed to have boosted investor confidence and funding in the market. This is because the halving reduces the reward given to Bitcoin miners for creating new blocks by half.

Following the latest event, miners are set to receive approximately 3.125 Bitcoins as rewards. Prior to the last halving in 2020, miners earned 6.25 Bitcoins for every block mined. According to Coinbase analysts Duong and Han, this decrease in miner rewards will lead to a reduction in Bitcoin supply, potentially resulting in favorable market conditions and profits in the upcoming quarter. Numerous optimistic predictions for Bitcoin’s post-halving price have been put forward, adding fuel to the growing sense of positivity.

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2024-04-09 15:39